Admiral Group initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Admiral Group with a Sector Perform rating and 2,600 GBp price target. Admiral’s “track record in UK Motor insurance is the envy of peers thanks to a differentiated business model,” says the analyst, who expects the company to capitalize on current favorable pricing conditions. However, the firm adds that Admiral is “unlikely to be immune from regulatory risks” and views shares as fairly valued at the current valuation.